The Economy’s Effect on Retirement: Can we Plan Better?

Posted by Mrs Money on July 13th, 2008

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Have you noticed that when you go into your local grocery store the age of greeters and workers seems to be increasing? I know from working at the bank the number of our older customers that are now working after being retired is increasing. I know we’re all living through this economic turndown, but many of us don’t realize the effect it has on retirees and those that are close to retiring. Heck, what about those of us who would like to retire one day? We’re being affected too because we can’t save as much!

The other day at lunch I read this article about how people who are retired are having to cut back on their traveling. That triggered a thought in my mind: how many people as they are planning for their retirement actually consider the fact that inflation can sometimes go haywire? If you stop and think about it, these people have saved and saved for so many years, and they probably figured in inflation as well, but how can they predict (and cope) with something close to hyperinflation like we may be dealing with now?

It really makes me think of how I want to handle my money and savings for retirement. I know with the market being so horrible, I’ve lost money, and that’s just made me want to diversify my savings even more. I want to know that I’ve got liquid cash saved for whatever emergencies come along. I want to know that my money is safe and secure and I’m not going to lose money for some part of it. Of course, I’m still young and I’m okay with having my 401K and Roth IRA in stocks and mutual funds. I’m just saying I want to make sure I’ve got some money in a liquid savings account for retirement too.

I feel bad for the people that have retired and then gone back to work. They worked many, many years and looked forward to their retirement and now it’s being pushed back. I know they are most likely thankful for the opportunity to work, so I keep that in mind. I think the main lesson I’ve learned is that you can never save too much money. Still live your life and have a good time, but make saving a priority. You won’t regret you did!

What are some steps you are taking to ensure your retirement is everything you want it to be? Are you paying off debt, saving more, or living on less?

Yakezie!

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